Organization Structure
"No topic under management has undergone as much change in the past few years as that of organizing and organizational structure." Organizational Structure can be defined as formal pattern of how people and job are grouped in an organization. This is often presented by an organizational chart. When managers change or develop the organization structure they are involved in organizational design. This process involves six key elements: work specialization, departmentalisation, centralization and decentralization, and formalization. Work specialization is the "the degree to which tasks in an organization are divided into separate jobs: also known as division of labour." The success of Mayo Clinic, well-known for its expertise in every branch of medicine, is mainly due to the specialization of its 2,000 physicians and 35,000 allied health staff members biology, dermatology, medical genetics, oncology, radiology, surgery , and urology to name a few. Division of labour is the method of breaking down huge tasks into small specialized ones, making it easy for the workers to perform efficiently and effectively. Before 1960s, th
4Factors That influence the Amount of Centralization and Decentralization. LEVELS12340 positions 6 to 8 subordinates No. e concept of specialization was widely used as phenomenon to increase the effectiveness and efficiency of workers. We can classify them as mechanistic, organic, bureaucratic and matrix. It depends on the culture and the nature of market they are targeting at. Then it was realized that the work productivity could be increased by enlarging work activity not narrowing it further. Organizations with flat structure tend to have wider span of control, with less number of hierarchical levels, that is, chain of command. An advertisement agency TBWA Worldwide is an organic, flexible, organizational structure which allows most of its workers to work informally as they want, whether they are meeting in company's dining room or working at home. These types of organizations are centralized. of levels = 3 report to each supervisor/manager Fig. Robbins, (2001) The three other concepts which are necessary to describe the chain of command are authority, responsibility, and unity of command. They tend to highly adaptive and flexible. The main criticism of this model is that it gives very short shrift to human variable within the organization.
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